August 9, 2023
To whom it may concern:
Company name:
Furukawa Co., Ltd.
Name of representative: Minoru Nakatogawa,President and Representative Director(Securities code: 5715; TSE Prime Market)
Inquiries:

Tomohiro Takagi,
General Manager,
Sustainability Promotion Department(Telephone: +81-3-6636-9537)

Notice Regarding Endorsement of TCFD Recommendations and Disclosure of Information
At its meeting held today (August 9, 2023), the Board of Directors of Furukawa Co., Ltd. (the“Company”) resolved to express its support for the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD)*1. We hereby announce that we disclose information based on
the said recommendations and participate in the TCFD Consortium*2. See below for details.
*1 Task Force on Climate-related Financial Disclosures (TCFD): An international initiative established by the Financial
Stability Board (FSB) in 2015 to encourage companies to disclose information on the financial implications ofrisks and opportunities that climate change presents to their businesses.
*2 TCFD Consortium: A body established as a forum for companies and financial institutions that endorse the TCFD
recommendations to work together to promote various initiatives, with the aims of ensuring efficient corporate
information disclosure and discussing efforts to link disclosed information to appropriate investment decisions byfinancial institutions and others.

1. Endorsement of TCFD Recommendations
The Furukawa Company Group (the “Group”) hereby announces its endorsement of the TCFD
recommendations. The Group takes climate change seriously and intends to deepen its
understanding of climate-related risks and opportunities affecting its business while promoting
more proactive disclosure of information based on the TCFD recommendations.
We also aim to realize a safe, environmentally friendly, and prosperous society by pursuing
climate-related initiatives and stimulating dialogue with our stakeholders using disclosed
information.

2. Information Disclosure Based on TCFD Recommendations
Information on the four core disclosure elements of the TCFD recommendations (Governance,Strategy, Risk Management, and Metrics and Targets) is disclosed in the attached document.

Inquiries
Public & Investor Relations Section, Corporate Planning Department, Furukawa Co., Ltd.
Telephone: +81-3-6636-9501

Attachment

Information Disclosure Items Based on TCFD Recommendations
In order to accurately identify how risks and opportunities associated with climate change will impact
corporate management (including financials), the TCFD recommends that information be disclosed inaccordance with four core disclosure elements: Governance, Strategy, Risk Management, and Metrics andTargets. The Group will work to further enhance disclosure based on these four elements.

1. Governance
The Group recognizes that risks and opportunities associated with climate change represents an importantmanagement issue and is working to reduce greenhouse gas (GHG) emissions among other things. The
Sustainability Promotion Meeting, chaired by the President and Representative Director, deliberates on how
to address issues related to climate change and reports details of its deliberations to the Board of Directors.
The Sustainability Promotion Meeting discusses various matters related to climate change. These include
formulation of basic policies and action plans for the Group’s climate change responses, development of apromotion framework, verification and evaluation of the status of activities, and education and public
relations measures, and so on. In addition to Company directors and the presidents of each core operatingcompanies, the Meeting includes the chairman of the Environmental & Safety Management Committee(general manager of the Environmental & Safety Management Department) and the general manager of theSustainability Promotion Department. The Sustainability Promotion Department and the Environmental &Safety Management Department formulate the Group’s climate change response strategies, manage targets,and develop a climate-related transition plan (roadmap) based on deliberations and suggestions made by theMeeting. Those departments also work together with the implementation bodies (the Group companies andevery company department) to develop a PDCA cycle of planning, execution, evaluation, and improvement.
Implementation of climate change responses by the Group companies and every company department issubject to institutional decisions by the Company’s Management Council, Board of Directors, and others
according to the level of importance. The director in charge of the Sustainability Promotion Department
reports on the progress and results of climate change responses to the Board of Directors from time to time,
thereby providing proper oversight by the Board.

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Governance Structure for Climate Change Responses- Climate change response oversight

Board of Directors

Instruction

Reporting
Alignment withGroupwide risks- Chairperson = President and Representative Director- General deliberations on climate change responses

Risk Management Committee

Sustainability Promotion Meeting

Interaction

Environmental & Safety
Management Department- Formulate the Group’s climate change response

Secretariat
Sustainability Promotion Department

strategies- Manage targets- Develop climate-related transition plan (roadmap), etc.

Interaction

Interaction

Implementation Bodies
Furukawa Co., Ltd.

Core operating companies

Relevant Departments
Furukawa Industrial Machinery Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa UNIC Corporation
Furukawa Metals & Resources Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

Organizations and Meeting
Bodies- Execution of climate change responses(PDCA implementation)

Roles

Board of Directors- Request/instruct the Sustainability Promotion Meeting on climate-related matters and deliberate
on matters reported and/or proposed by the Meeting- Oversee the resolution and execution of important matters related to climate change

Sustainability Promotion Meeting- Discuss and formulate basic policies and action plans for the Group’s climate change responses,
development of a promotion system, verification and evaluation of the status of activities, andeducation and public relations measures- Meet once a year, in principle, and otherwise as needed

Sustainability Promotion Department
Environmental & Safety Management
Department- Formulate the Group’s climate change response strategies, manage targets, develop climate-relatedtransition plan (roadmap), etc.
- Oversee the PDCA cycle in collaboration with the implementation bodies for climate changeresponses

Relevant departments of Furukawa
Co., Ltd.
Core operating companies- Serve as implementation bodies to deploy PDCA cycle for climate change responses- Serve as
implementation bodies to deploy PDCA cycle for climate change responses

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2. Strategy
The Group operates numerous businesses and recognizes that the risks and opportunities associatedwith climate change vary from business to business. With this in mind, we decided to conduct asequential scenario analysis of each business segment from two perspectives: the impact of climatechange and the scale of business sales. As a first step, we conducted scenario analyses of the Rock
Drills segment and Metals segment from February to June 2023.
For the scenario analyses, we set 1.5˚C and 4˚C scenarios based on scientific evidence from theInternational Energy Agency (IEA) and other sources. We then evaluated the significance of climaterelated risks and opportunities that could affect our business in 2030 and 2050.
We plan to conduct scenario analyses of other segments as well while continuously reviewing the analysesof segments already covered. We will also disclose information about risks and opportunities we haveidentified in a timely and appropriate manner.
Scope of this year’s analysis: Rock Drills segment (Furukawa Rock Drill Co., Ltd.);
Metals segment (Furukawa Metals & Resources Co., Ltd.)* Combined sales of above two segments as percentage of consolidated
net sales: 68.7% (FY2022)
1.5˚C Scenario
Set Scenarios

Reference scenario

World view

Emergence of transition risks andopportunities⇒ 2030 assumption

4˚C Scenario
Emergence of physical risks and opportunities⇒ 2050 assumption- IEA Net Zero Emissions by 2050
Scenario- IEA Sustainable Development
Scenario- IPCC RCP2.6- IEA Stated Policies Scenario- IPCC RCP8.5- There is a risk of cost increases due tothe Japanese government’s push tointroduce GHG emission regulations
and a carbon tax.
- With attention focused on productswith low environmental impact, we see
opportunities for increased revenues
from sales of materials for EVs andrenewable energy facilities, as well as
products with high-energy-saving
performances.

- Extreme weather conditions will cause
increases in natural disasters and risingtemperatures, leading to the risk ofdamage to business sites and systemfacilities, as well as the risk of increased
costs, such as higher raw material
prices, due to difficulties in procuring
materials.
-Given progress in technologicalcountermeasures and investments toaddress extreme weather events, we see
opportunities for increased revenues
from related products, technologies, andservices.

(1) Lists of risks and opportunities
The Group has analyzed and studied various risks and opportunities related to climate change incollaboration with Furukawa Rock Drill Co., Ltd., and Furukawa Metals & Resources Co., Ltd., as well
as relevant departments and the Sustainability Promotion Department of the Company. Among identified
risks and opportunities, those deemed to have a “medium” or greater impact on our business are listed4/7

below.
<Degree of impact>

Large: Major impact on the Company group
Medium: Limited impact on the Company group
Small: Minimal impact on the Company group

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List of Risks

Type ofRisk

Risk Description

Qualitative
Evaluation
1.5℃

Government policies/regulations
Technology

Failure to meet needs of themarket, which favors productswith low environmental impact,
will result in lower sales.

MarketTransition risk

Risk

Introduction of a carbon tax will
increase transportation and otherfuel procurement costs, as wellas production costs andoperationalcosts(GHGresponse costs related toelectricity and delivery).

Expanding the share of renewableenergy in the power supply mix ofelectric utilities will raise the priceof electricity and increase
operating costs.

Countermeasures

4℃

Acute

Physical risk

Large

Small

MediumSmall

Medium

Small

Small

Large

Extreme weather events (such asflooding) may cause offices andfactories to shut down, resulting
in decreased sales and/or
increased restoration costs

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Switch to renewable energy, save energy,
and reduce the environmental impact ofour products- Utilize renewable energy sources, such as
solar power- Improve energy efficiency by introducing
LED lighting and energy-saving equipment,
reviewing manufacturing processes, andstrengthening GHG emission controls at
production facilities- Reduce environmental impact of ourproducts by using recyclable materials andextending product life
- Increase use of environmentally friendly
vehicles, such as EVs- Reduce GHG emissions through purchase ofnon-fossil certificates, etc.
Shift to products with low environmental
impact- Collaborate with suppliers to manufactureand develop products with low environmental
impactPromote renewable energy power sourcesto reduce electricity costs, use more
renewable energy sources, conserve energy,
and reduce environmental impact of ourproducts- Promote renewable energy sources with zeroCO2 emission factors to reduce electricity
costs- Improve energy efficiency by introducing
LED lighting and energy-saving equipment,
reviewing manufacturing processes, andstrengthening GHG emission controls at
production facilities
Minimize damage and ensure proper
management when disaster strikes- Secure multiple means of transportation- Diversify suppliers and work to minimize
damage in the event of extreme weatherconditions- Reinforce flood countermeasures at factories- Conduct regular water risk assessments atsuppliers and sites and perform rigorous risk
management in the event of flooding orinundation- Implement a business continuity plan (BCP)
as a support and reporting protocol in theevent of damage

List of Opportunities
Type ofOpportunity

Qualitative
Evaluation

Opportunity Description

Countermeasures

MarketOpportunity

Technology

1.5℃

4℃

Rising demand for machines that contribute todecarbonization will help bolster sales.

Large

Small- Make capital investments tomeet demand

Reconstruction projects after disasters causedby extreme weather events will generatedemand for our products.

Small

Large

- Make capital investments anddevelop products to meet demand

Sales of products that contribute to energy
conservation will increase.

Large

Small

- Collaborate with suppliers to
expand lineup of energy-saving
products(2) Risks/opportunities and financial impacts based on relevant scenarios and, strategies and resilienceagainst themIn this scenario analysis, we collected data necessary to calculate parameters and financial impacts
and also performed a simplified calculation of the potential risks and opportunities. In the next fiscal
year and beyond, we will conduct scenario analyses of segments other than those covered this fiscalyear. We will also calculate the financial impact of risks and opportunities that may affect the Groupand reflect such calculations in our business strategies.

3. Risk Management
Assessment of climate-related risks and consideration of countermeasures are conducted by the Risk
Management Committee, which comprehensively deliberates important matters related to Groupwide risk
management. The Committee is chaired by the director in charge of sustainability of the Company, andthe Sustainability Promotion Department serves as its secretariat. The Committee meets twice a year inprinciple. Its members are selected from every Company departments and core operating companies.
Together with the secretariat, the members assess climate-related risks affecting the Group, consider andformulate countermeasures, and report the results to the Board of Directors, thereby proper oversight isprovided by the Board.

4. Metrics and Targets
While the physical risks associated with climate change are expected to increase, the government’s statedgoals of “reducing GHG emissions by 46% from the fiscal 2013 level by fiscal 2030” and “achievingcarbon neutrality by 2050.” indicate that risks and opportunities related to the transition to a low-carbon
economy to increase in the future. To achieve sustainable growth amid these changes, it is essential that
the Group continues to identify risks and opportunities and step up efforts to address initiatives on climatechange. With this in mind, we plan to develop a roadmap outlining the Group’s responses toward carbon
neutrality by fiscal year 2025. Committed to helping realize a decarbonized society, we will strive toprovide products, technologies, and services that are highly effective in reducing GHG emissions andreduce emissions associated with our business activities.
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